A fast-growing economy and rising income levels have strained the country’s power grid.
Reuters reports that a new national energy development strategy has called for a doubling of power generation capacity by 2030. This capacity is currently around 54 gigawatts (GW), a figure which would jump to 125–130 GW over the next ten years. Such an expansion would cost billions of dollars.
The news source quotes the strategy as being “aimed at ensuring national energy security, and sufficiently supplying power for fast and sustainable socio-economic development.”
As part of this plan, by 2030 the proportion of renewable energy in Vietnam’s energy mix will be 15-20%, while coal currently generates nearly 40% of electricity capacity.
Oil refineries have also been tasked with meeting at least 70% of demand within Vietnam for refined petroleum, while more infrastructure will be put in place to import 8 billion cubic meters of liquefied natural gas per year.
Last July, the same news outlet reported that the Ministry of Industry and Trade expects Vietnam to face severe power shortages starting in 2021 as demand outstrips supply and new power plant projects face delays and financial problems.
This year, coal and oil will be used to generate more power as low rainfall has left hydropower reservoirs too low to operate at full speed. Renewable energy grew by leaps and bounds last year, but further policy action is needed in order for such growth to continue.
[Top photo via Pxhere]
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